The Sri Lanka seeks investors for Paranthan Chemicals project, with plans to restart caustic soda and chlorine production under a public-private partnership, officials confirmed.
Government plans revival of caustic soda and chlorine production
Sri Lanka seeks investors for Paranthan Chemicals as the government prepares to invite expressions of interest from both local and foreign parties to restart production of caustic soda and chlorine. The initiative will be implemented under a public-private partnership at the Paranthan Chemicals Limited factory, according to Minister Nalinda Jayatissa.
He stated that Paranthan Chemicals Limited had already completed a feasibility study on restarting its caustic soda and chlorine manufacturing facility. The Cabinet has approved the proposal to move forward with the project on the 30-acre site allocated to the company in the country’s north.
Currently, Paranthan Chemicals imports chlorine and distributes it across the nation. Minister Jayatissa explained that Sri Lanka relies entirely on imported chlorine for its water treatment needs, which poses a risk of supply chain disruptions. Establishing a domestic chlorine manufacturing plant has therefore been identified as a nationally important measure to safeguard water security.
The resumption of operations at Paranthan Chemicals is expected to generate about 95 direct jobs and around 2,000 indirect employment opportunities. The project is also considered strategically vital for strengthening local industry and reducing import dependency.
Previous governments had explored opportunities to attract investors for value addition at Paranthan Chemicals, but the latest proposal emphasizes both national importance and long-term sustainability. The government also noted that requests for proposals will soon be issued for value addition projects and the upgrading of selected state-owned enterprises, signaling a broader commitment to economic reform and industrial revival.